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By Myrna Trauntvein
TN Correspondent

Juab County received a “clean” independent auditor’s report for the past year.

“In our opinion,” said Jon Haderlie, CPA and Partner at Larson and Company, Spanish Fork, “you have an unmodified opinion. An unmodified audit opinion, also known as a clean opinion, is the most favorable outcome of an audit. Essentially, we believe the financial statements are accurate and reliable.”

He said that the audit was required to be independent of Juab County and was required to meet other ethical responsibilities. He said that Juab’s management was responsible for the preparation and fair representation of the financial statements in accordance with the accounting principals generally accepted in the United States.

“Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatements whether due to fraud or error,” said Haderlie.

Management’s letter, he said, was helpful in understanding the financial records of the county. He recommended that the commissioners and the public review it to gain a knowledge of what was happening in the financials of the county.

“The government-wide assets of Juab County exceeded its liabilities by $238,847,831. Of this amount $37,074,338 (unrestricted net assets) may be used to meet the government’s on-going obligations to citizens and creditors,” he said.

The government’s total net assets increased by $9,378,595. The governmental funds reported combined ending fund balances of $34,126,358 an increase of $5,613,845. Governmental funds report capital outlay as expenditures.

The Capital Projects Fund increased in equity from $6,726,450 to $6,961,367 at year end. The General Fund increased its available equity by $1,904,620. The Class B Road Fund increased its available equity by $2,625,182.

Juab County’s financial statements focus on both the county as a whole (government-wide) and on the major individual funds. Funds are resources segregated for the purpose of implementing specific activities in accordance with special regulations, restrictions or limitations.

“Juab County has two discrete component units,” he said. “The largest of these units is the Special Service Fire District, and the other is Special Service District #2.

The government-wide financial statements reporting in the following categories are governmental activities, which cover most of the county’s basic services, and receive funding from property taxes, fees and state and federal grants. The county also reports on business-type activities which are fees charged to cover the cost of services provided by the Landfill Operations and the JRDA Landfill.

There are also component units included. These are separate legal entities. One is the Fire District and the other Special Service #2 which, although legally separate, are important because the county is financially accountable for them.

The county has several funds: government funds, proprietary funds and fiduciary funds.

“At the end of the current year, Juab County had long term debt outstanding of $7,753,562,” he said. “The debt represents both general obligations bonds and revenue bonds secured solely by specified revenue sources, capital leases payable, notes payable, and compensated absences.”

The county does not have general obligation debt though it does have long-term debt. Those debts are: Lease Revenue Bond Series 2008 for the Road Shed; Lease Revenue Bond Series 2008 for fire stations; Lease Revenue Bond Series 2009 for the fair ground bleachers; Lease Revenue Bond Series 2009 for a mental health facility.

Haderlie said that he did have a few compliance findings to discuss.

2024 budget, the one being audited, had some county reinvestment agency fund expenditures that exceeded budgeted appropriations. The solution, according to county response was that they would ensure that spending was reduced if needed and a budget amendment would be completed.

Fraud Risk Assessment: the county did not present its assessment in commission meeting within the allotted time frame. The county will make sure that is done in the future.

“The county has a deficit fund balance in the Special Events Fund and the Capital Projects Fund,” said Haderlie. “We recommend that, while preparing the current year budget, the county review the report to see if there was any deficit in the previous year in any of the funds. If a deficit has occurred, while preparing or amending the budget, ensure that there is a line item with an appropriation to retire an amount equal or greater than 5 percent of the fund’s deficit.”

One finding, that may have been due to changing financial institutions, was that the book balance and the bank reconciliation did not tie to the general ledger trial balance but that appeared to have been corrected in the current year.

When it came to the budget, he said, two non-major governmental funds, one special revenue fund, one agency fund, and one enterprise fund expenditures budgeted appropriations.

The county had not been preparing quarterly financial reports and presented those to the commission. However, he said, that had already been corrected.

“The county has a deficit fund balance for Special Revenue Fair Fund,” said Haderlie. “In the amended and subsequent budget, there is no appropriation to retire at least 5 percent of the deficit fund balance.”

“You should be complimented for the work you have done to improve in the past year,” said Haderlie.